President Obama has signed an executive order creating a new kind of retirement account.
The "MyRA" is a starter retirement account someone can open with as little as $5 from their paychecks.
Local financial experts said if you are thinking about starting a retirement plan, you should do your homework, especially before filing your taxes this year.
President Obama said the MyRA is a new way for working Americans to start saving for retirement.
"MyRA guarantees a decent return with no risk of losing what you put in," the president said.
MyRA is geared toward workers whose employers don't offer a plan. It would utilize automatic tax exempt contributions.
White House officials said MyRA will be backed by U.S. savings bonds.
Laurie Siebert, Valley National CPA and certified financial adviser, said the plan is a good idea for people who are just starting to save but want to be ready for retirement.
"Social Security is definitely not going to be enough to live on, so we have to change that mindset," said Siebert.
Siebert said the only risk is that savings bonds only offer 0.1 percent interest. She said some other financial vehicles may offer more return, but may be subject to fees and, in some cases, market fluctuations.
Siebert said some first-time savers can get a tax break for saving through the retirement savings contribution credit.
For example, a single person making less than $17,750 a year could take 50 percent of his retirement contribution off of his 2013 taxes, up to $2,000.
The tax credits also apply to married and head-of-household tax filers.
Seibert said people have until April 15 to start or contribute to a retirement account for the 2013 tax year.
"If you are below the income thresholds for this credit, it could be a significant tax savings," said Siebert.
The White House is expected to release more details about MyRA soon.
The president said it will allow people to begin saving even if they can't afford a large initial investment.
- Airbus says it has received 'oral assurances' on Brexit
- Indiana teen filmed suspect before double homicide, police say
- Supreme Court rules in favor of death row inmate
- Apple's massive spaceship campus will open in April
- Chinese moves in South China Sea unsettling to Southeast Asian countries
- Scientists discover coin-sized night frogs in India
- Updated Police called to shooting in Allentown, 2 taken to hospital
- Wilson superintendent resigns after auditor's report
- Updated Police search Horvath's father-in-law's home, seize several weapons
- Updated In-home care provider expands to Berks; 25 jobs to be added
- Updated Authorities identify 2 victims of Atlantic City stabbing
- Police: Mom caught with meth, heroin, marijuana
- Bethlehem Township man killed in motorcycle crash
- Sinking Spring man charged in case of road rage
- Updated Warmer air returns this afternoon through the end of the week with a few showers
- RACC to open satellite location at Wilson school